With yachts being about the oldest form of transport still being used, it is not surprising when you realize that boat insurance has been available in varying forms for thousands of years. All maritime vessels as quoted by the maritime Insurance Act must have insurance before they are allowed to sail. As with automobile insurance, policies come with an excess to deter small claims and for boat insurance, this is usually quite a large sum of money, as the intention of the underwriter is to cover you against substantial losses instead of just scratches and dents. There is little difference between the two types of policy (motorcar and yacht) except the amount of cover supplied with yacht cover is substantially bigger.
As soon as you become a yacht owner in the US, most states will need you to have a yacht insurance plan in force. Houseboats are a strange case because although they are not generally moved that are required to have an insurance policy which covers pleasure boats like cabin cruisers, sailboats and ski boats etc. However, a speedboat is in a entirely different category to say a sport fishing vessel owing to the nature of its actions and a higher insurance premium is likely.
Almost all boat insurance plans will cover the cost of replacing the vessel, engine and the yacht trailer but Actual Cash Value boat insurance plans only pay for replacement less any vessel wear and tear from the point of loss. Usually when a boat has been battered beyond repair, its up-to-date market rate is calculated using second hand values as a guide. It is possible to take out Ex Gratia Insurance which will include additional extras such as emergency services to the boat, cover for reasonable repairs, removal, the motor and trailer. Partial damage repairs on the other hand are calculated by working out the full charge to restore the boat less deductibles.
Agreed amount value yacht insurance policies mean that the owner of the yacht and the insurance company have decided on the cost of the yacht, and in the aftermath of a total loss the owner will be covered with that amount. This type of plan also takes into account that old items have depreciated and have less value but are still replaced with new ones. With most Agreed value insurance policies, the yacht insurance company will require replacement value of some items like dinghies, sails, covers, drive units to name a few, before the policy payout value is agreed.
Most yacht insurance insurance policies can be broken down into two main areas: value of the goods lost or damaged and that of liability. Liability insurance is there to cover against claims by another person that the insured boat caused damage or injury to a third party. At an early stage it is worth trying to employ the services of an insurance agent who has experience and a reputation for locating the best boat insurance and settlements for his clients. A final piece of advice surrounds the liability section of the insurance policy and the need to guarantee you are covered should legal charges be brought against you relating to a matter that is protect under the yacht insurance.
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